Shine Enterprises Inc.is a large financial conglomerate that operates in more than 50 countries and employs over 80,000 people across the world.It operates through multiple regional product divisions, which tend to function as autonomous profit-and-loss centers.This allows the company to reap significant economies of scale.Though each division acts as an autonomous firm with its individual regional leaders, frequent sharing of knowledge between the divisions allows for global learning.These factors help the company reconcile product and service differentiations at low cost.Which of the following strategies does Shine Enterprises Inc.most likely use?

Question

Quizplus · Accepted Answer

Shine Enterprises Inc. most likely uses a transnational strategy. Multinational enterprises (MNEs) pursuing a transnational strategy attempt to combine the benefits of a localization strategy (high local-responsiveness) with those of a global-standardization strategy (lowest cost position attainable).